Our free forex signals service today looks at a high probability trade setup for the NZD/USD. We have the entry, stop and take profits levels for you.
The NZD/USD pair, which closed in negative territory for the first two days of the week, plunged to a six-day low at the start of the European session before showing a modest recovery. At the time of writing, the pair had remained broadly unchanged throughout the day, around 0.7100.
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Despite the recent gains in the dollar, the NZD/USD pair has been unable to gain traction. US dollar index currently stands at 92.63, down 0.07%. However, risky market conditions will help the dollar find demand on Wednesday in the absence of fundamentals. Major European stocks experienced losses of 0.6-0.9%, in line with the gloomy mood.
The NZD/USD market is currently more concerned about the European Central Bank’s (ECB) monetary policy decision, which adds to the risk-averse sentiment amid mixed messages from policymakers. Robert Holtzmann of the ECB supported a faster cut, while Bostjan Vasle said monetary policy should be “very flexible.”
US diplomats also added doubt about President Joe Biden’s six-figure strategy, which will be announced on Thursday, and Jerome Powell’s reappointment as Fed chair to sway opinion. Moreover, Republican and Democrat signals suggest a bumpy road to stimulate the US economy, dampened sentiment and increasing demand for the dollar as a safe haven.
Against the backdrop of these events on Thursday, the US 10-year Treasury yield fell 3.5 basis points to 1.322%. In addition, the US dollar index (DXY) is clinging to a two-week high during a three-day rally.
NZD/USD free forex signals
Instrument: NZD/USD
Order Type: SELL STOP
Entry price: 0.7073
Stop Loss: 0.7120
TP1: 0.7019
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.1
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Saqib Iqbal
